Southwest Business Corporation Mortgage Complaint

Southwest Business Corporation Mortgage department,

Conventional fixed mortgage Loan servicing, payments, escrow account Colorado

The defrost mechanism in our refrigerator broke and water was leaking under it without our knowledge. This caused substantial damage to our bamboo flooring. A flooring contractor informed me that we had water damage, but stated he could refinish the floor. After initiating a claim, the mitigation company contracted by our insurance company determined the floors could not, in fact, be refinished. As a result, we had our kitchen floor and a large portion of the adjacent wall ripped out. We have now lived like that for 2 months while we waited for our insurance company to determine an " appropriate '' value for floor replacement. Finally, they informed us that they would be issuing us a check that would allow us to move forward with our renovations. I have since learned that it is fairly standard for insurance companies to require checks larger than $10000.00 be managed by the property lien holder ( mortgage company ). What is NOT standard is the ridiculous amount of hoops that our mortgage company, SWBC, is asking from us. We must not only send them a - with a signed contract from any contractor working on projects, but continuous itemized receipts to receive


I would like to manage the finances of this project on my own? So, if I am able to find flooring and a contractor to do the work for less then the amount of money placed in escrow, where does the remainder of the money go?? Do they keep it, send it back to -? This has been such a disaster. I have spoken to many persons with similar claim amounts wherein their lender simply required them to sign a waiver showing intention to complete repair work. I have since been on the - site where I discovered multiple complaints on the same issue of prompt insurance check payments from SWBC. They complained of waits upwards of 2 months! I simply can not have holes in our kitchen for another 2 months while I wait to be repaid for repairs? Is the escrow check interest earning? Is SWBC really paying to employ persons to manage this? This seems like an unbelievable waste of resources. I am so regretting using this lender, and we will immediately refinance after this debacle ends, but for now ... our insurance claim money is being held hostage?? I never knew this was legal. : (